SUSTAINABLE PROCUREMENT POLICY

Transcription

1 Ref No: SPP/1b SUSTAINABLE PROCUREMENT POLICY Version: Ratified by: Title of originator/author: Title of responsible committee/individual: SECTION 1 PROCEDURAL INFORMATION Date issued: May 2017 Review date: May 2020 Target audience: 1b Trust Document Ratification Group Head of Procurement Business Investment Committee Head of Procurement Trust Wide Copyright 2017 The Rotherham NHS Foundation Trust Version 1b SUSTAINABLE PROCUREMENT POLICY Page 1 of 18 Please check the intranet to ensure you have the latest version

2 Document History Summary Version Date Author Status Comment 1a April 17 Paul Ralston Draft Submitted to Director of Estates, Director of Finance, Procurement Staff and Counter Fraud for comments 1b April 17 Paul Ralston Final Minor amendments based on feedback from Estates and Procurement Version 1a SUSTAINABLE PROCUREMENT POLICY Page 2 of 18

3 Section 1 Contents Section Title Page 1 Introduction 4 2 Purpose & Scope Purpose Scope 4 3 Roles & Responsibilities 6 4 Procedural Information 7 5 Definitions & Abbreviations Definitions Abbreviations 7 6 References 8 7 Associated Documentation 8 Section 1 Appendices Appendix Title Page Appendix 1 Key Principles and Aims 10 Section 2 Contents Section Title Page 8 Consultation and Communication with Stakeholders 15 9 Document Approval Document Ratification Equality Impact Assessment Review and Revision Arrangements Dissemination and Communication Plan Implementation and Training Plan Plan to monitor the Compliance with, and Effectiveness of, the Trust Document 15.1 Process for Monitoring Compliance and Effectiveness Standards/Key Performance Indicators 17 Section 2 Appendices Appendix Title Page Appendix 1 Completed Equality Impact Assessment Version 1a SUSTAINABLE PROCUREMENT POLICY Page 3 of 18

4 1. INTRODUCTION This Sustainable Procurement Policy sets out the framework by The Rotherham NHS Foundation Trust will achieve value for money and deliver environmental, social and economic benefits the its procurement of goods and services for the Trust. The Trust s key sustainability objective is to realise opportunities for sustainable development through its procurement activities This policy is linked to the Trust s Procurement policy and the two policies are designed to work in conjunction. This policy is also aligned to the Trusts Sustainable Development Management Plan which includes all aspects of sustainability for the Trust including those outside of Procurement and our supply chain. 2. PURPOSE & SCOPE 2.1 Purpose The sustainable procurement policy is designed to:- Increase awareness of sustainable procurement principles within Procurement. Promote the sustainable purchasing policy, aims and objectives to key internal stakeholders when working on relevant procurement projects. Embed good practice in sustainable procurement in day to day working and as part of the procurement process. Consider the whole life cycle impacts of the procurement. Ensuring that environmental, social and economic impacts are appropriately considered in the assessment of value for money when setting up contracts or framework agreements. Managing tendering and lotting strategies that ensure fair access to contracting opportunities for businesses of all sizes and types. Collaborating with other NHS Trusts and other organisations to improve knowledge and understanding of sustainable procurement and to seek shared opportunities and benefits. Promoting the value of human rights and equality within its supply chain. 2.2 Scope Version 1a SUSTAINABLE PROCUREMENT POLICY Page 4 of 18

5 This policy applies to all procurement activities (clinical and non-clinical) within the Trust. This policy applies to all full-time and part-time personnel within The Rotherham NHS Foundation Trust including staff on temporary or honorary contracts as well as bank staff and students. This policy also covers individuals working on behalf of the Trust, such as Independent Contractors, Sub-Contractors and representatives from other Partner organisations. The Trust will ensure that the application of all or part of this policy does not have the effect of discriminating, directly or indirectly against staff or potential suppliers on grounds of race, colour, age, nationality, ethnicity, gender, sexual orientation, marital status, religious belief or disability. The policy should be read in conjunction with those policies listed at Section 7 (Associated Documentation). Version 1a SUSTAINABLE PROCUREMENT POLICY Page 5 of 18

6 3. ROLES & RESPONSIBILITIES Roles Board of Directors Chief Executive Executive Management Team The Director of Finance The Procurement Team Responsibilities The Board of Directors will assure itself that the Policy is being implemented effectively and is responsible for ensuring that the strategic context of the Policy is appropriate and that it meets the needs of the Trust. The Chief Executive has overall responsibility for the Trust s compliance and to ensure that the appropriate management systems are in place and working effectively. It is the responsibility of the Trust s Directors and members of the Executive Management Team to ensure that they are familiar with the contents of the Policy and that identified persons within the directorates have lead responsibility for ensuring the Policy is available and adhered to at all times. The Director of Finance is responsible for ensuring the implementation of the Policy and for co-ordinating any corrective action necessary to further the Policy. The Procurement Team will work with Department Heads, Matrons, Clinical and Non-Clinical Leads and Heads of Specialities to improve adherence to good practices and to ensure compliance with the Policy. Responsibilities of respective category managers will include: Conducting procurement activities in accordance with the aims of this policy Managing the evaluation and assessment of goods and services taking into account social, ethical, environmental and economic impacts are considered. Managing supplier engagement with particular emphasis on sustainability in the supply chain via regular meetings with input from clinical and non-clinical colleagues. Version 1a SUSTAINABLE PROCUREMENT POLICY Page 6 of 18

7 Roles Departmental Managers (Budget Holders) Trust Employees Responsibilities Ward/Department/Service Managers at all levels are responsible for ensuring that the staff for whom they are responsible are aware of and adhere to this policy. They are also responsible for ensuring staff are updated in regard to any changes in this Policy. Ward/Department/Service Managers will be expected to incorporate general awareness of this policy into local induction procedures; noting when such awareness was given, ensuring that a copy is made available to all staff in their respective areas (or by referring staff to the intranet location, as mentioned above). It is the employee s responsibility to comply with this and any other associated policies. 4. PROCEDURAL INFORMATION Procedures setting out how Procurement activities are to be undertaken are described within the following appendices: Appendix 1 Key principles and aims 5. DEFINITIONS AND ABBREVIATIONS 5.1 Definitions The Packaging and Packaging Waste Directive (94/62/EC) The Packaging and Packaging Waste Directive is a single market measure, with environmental goals. The Directive applies to all packaging placed on the market within the EU, and all packaging waste - whether disposed of at industrial or commercial sites, or from private homes. 5.2 Abbreviations CSR NHS Corporate Social Responsibility: A term used to describe the organisations obligation to act in an environmentally friendly and sustainable manner considering the implication on the local and wider population of the impact from the goods and services we buy and discard. National Health Service Version 1a SUSTAINABLE PROCUREMENT POLICY Page 7 of 18

8 SME A Small or Medium-sized Enterprise is a business or company that has fewer than 250 employees, and has either (a) annual turnover not exceeding 50 million (approximately 40 million) or (b) an annual balance-sheet total not exceeding 43 million (approximately 34 million); and of whose capital or voting rights, 25 per cent or more is not owned by one enterprise, or jointly by several enterprises, that fall outside this definition of an SME. 6. REFERENCES Modern slavery Act 2015 Procuring for Carbon Reduction (P4CR) The Packaging and Packaging Waste Directive Trading Standards The Bribery Act 2010 Fraud Act 2006 Environmental Protection Act 1990 The Environment Act 1995 Management of Health and Safety at Work Regulations 1992 The Control of Substances Hazardous to Health (Amendment) Regulations 2004 Environmental Protection (Duty of Care) Regulations 1991 The Environmental Information Regulations 2004 Environmental Protection (Polychlorinated Biphenyls and Other Dangerous Substances) Regulations 2000 Procurement Transparency March 2015 Public Services (Social Value) Act 2012 Public Contracts Regulations ASSOCIATED DOCUMENTATION Trust Procurement Policy Trust Standing Orders Version 1a SUSTAINABLE PROCUREMENT POLICY Page 8 of 18

9 Trust Standing Financial Instructions Trust Waste Management Policy Trust Data Protection Policy Trust Environmental Management Policy Trust Policy for the Development, Monitoring and Review of Trust Documents Trust Medical Devices Policy Trust Counter Fraud, Bribery and Corruption Policy Trust Sustainability Development Management Plan Version 1a SUSTAINABLE PROCUREMENT POLICY Page 9 of 18

10 APPENDIX 1 1. Background 1.1. The Rotherham NHS Foundation Trust is committed to achieving value for money and delivering environmental, social and economic benefits through its procurement of goods and services for the Trust. 2. What is Sustainable Procurement? 2.1. Sustainable procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis. This means generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment The role of sustainable procurement is to eliminate and mitigate risks of potential adverse impacts and to identify and unlock opportunities for financial and other benefits NHS Procurement and Commercial Standards state that all aspects of CSR are considered during the procurement process Sustainable procurement requires the Trust to work in partnership with suppliers and the supply chain to take into account the whole lifecycle, environmental, social and economic impact of procured goods and services Sustainable procurement is not limited to environmental considerations alone (such as carbon, waste and water). It also covers economic impacts from procurement actions, such as encouraging increased participation from SME s and social impacts such as ensuring human rights and employment standards are met at all times. Version 1a SUSTAINABLE PROCUREMENT POLICY Page 10 of 18

11 3. Key Principles 3.1. The three key principles of Sustainable procurement are: Environmental Action Seeking to minimise any negative environmental impacts of goods and services purchased across their life cycle Community/Social Involvement Managing and monitoring the contract award process to ensure fair contract prices and terms are applied and that ethical, human rights and employment standards are met Economic Growth Ensuring value for money contracts and that all businesses regardless of size have a fair opportunity to win contracts Through tackling all three principles of sustainable procurement in the procurement process, we aim to embed these so that they eventually become an integral part of all relevant contracts, at pre-tender, tender and post-contract award stages (including monitoring and evaluation), through to the end of the life of the contract and including any disposal of equipment or handover costs for services Wherever possible the Trust will look to recycle and reuse, looking to keep resources in use for as long as possible. Then looking to recover, recycle and regenerate products at the end of each service life, and therefore contribute in working towards a circular economy. 4. Our Sustainable Procurement KPIs 4.1. Our sustainable procurement KPIs are to: Comply with the principles of the Modern Slavery Act Ensure Equality and Inclusion is considered in tenders Version 1a SUSTAINABLE PROCUREMENT POLICY Page 11 of 18

12 Introduce Environmental considerations within the tendering process in relevant tenders 5. How will we achieve this? 5.1. We will work on the following areas Specifications By using output based specifications this will avoid restricting potential suppliers offered solution with a detailed specification. We will allow the markets to respond with innovative sustainable solutions Life-Cycle Costing Life-cycle costing techniques shall be employed wherever possible when awarding contracts. The assessment of the sustainability impact over the life-cycle of key categories will be established as regular practice, including consideration of, for example: Environmental/social cost of manufacturing process; Cost of transportation, stockholding, packaging and delivery; Cost of training; Cost of operation (e.g. cost of energy, consumables); Cost of repairs, maintenance, down-time and spares; Cost of decommissioning, removal and safe disposal Collaboration We will continue to work with other organisations and consortiums in achieving value for money through collaborative working. This will be extended to sharing knowledge and adopting common processes and approaches to sustainable procurement Supply Chain We will work closely with key suppliers and those that pose a high risk in ensuring that they are compliant with relevant legal and ethical responsibilities with consideration on the three key themes (environmental, social and economic) Contract Management Sustainability will be included on the agenda for relevant contract supplier reviews in order to engage with suppliers on their procedures/progress Modern Slavery Act 2015 The Trust is exempt from reporting against the Modern Slavery Act 2015 as we are not a commercial organisation selling goods and services above the minimum turnover threshold. That said, we are committed to ensuring that our supply chain is free from slavery and we will therefore work with our suppliers to ensure this. Version 1a SUSTAINABLE PROCUREMENT POLICY Page 12 of 18

13 SMEs The Government set an aspiration that 25% of central government procurement spend, by value, flows to SMEs directly and through the supply chain, by Although not central government, we as a Trust are also committed to increasing the number of contracts that are awarded to SMEs. We will do this by complying with the new Public Contracts Regulations 2015 and by following an open tender procedure as our standard procedure wherever possible Environmental Considerations Where applicable to the goods and services being procured, we will consider any environmental issues and seek to minimise any negative impacts. Version 1a SUSTAINABLE PROCUREMENT POLICY Page 13 of 18

14 POLICY AND GUIDANCE FOR THE PROCUREMENT OF GOODS, SERVICES AND WORKS (PROCUREMENT POLICY) SECTION 2 DOCUMENT DEVELOPMENT, COMMUNICATION, IMPLEMENTATION AND MONITORING Version 1a SUSTAINABLE PROCUREMENT POLICY Page 14 of 18

15 8. CONSULTATION AND COMMUNICATION WITH STAKEHOLDERS This document was developed in consultation with: Director of Estates Procurement Staff Business Investment Committee, Finance and Performance Committee Trust Management Committee. 9. APPROVAL OF THE DOCUMENT This document was approved by: Business Investment Committee, Finance and Performance Committee Trust Management Committee. 10. RATIFICATION OF THE DOCUMENT This document was ratified by the Trust Document Ratification Group. 11. EQUALITY IMPACT ASSESSMENT STATEMENT An Equality Impact Assessment has been carried out in relation to this document using the approved initial screening tool; the EIA statement is detailed at Appendix 1 to this section of the document. The manner in which this policy impacts upon equality and diversity will be monitored throughout the life of the policy and re-assessed as appropriate when the policy is reviewed. 12. REVIEW AND REVISION ARRANGEMENTS This document will be reviewed by the Head of Procurement every three years unless such changes occur as to require an earlier review. 13. DISSEMINATION AND COMMUNICATION PLAN To be disseminated to Quality Governance Team via policies Disseminate d by How When Comments Author Within 1 week of ratification Remove watermark from ratified document and inform Quality Governance Team if a revision and which document it replaces and where it should be located on the intranet. Ensure all documents templates are uploaded as word documents. Version 1a SUSTAINABLE PROCUREMENT POLICY Page 15 of 18

16 To be disseminated to Communication Team (documents ratified by the document ratification group) All users Key individuals Staff with a role/responsibility within the document Heads of Departments / Matrons All staff within area of management Disseminate d by Quality Governance Team Communication Team Author Meeting / as appropriate Heads of Departments /Matrons How When Comments Within 1 week of ratification Within 1 week of ratification Meeting / as appropriate When final version completed As soon as received from the author Communication team to inform all users of the location of the document. Communication team will inform all users of the policy and provide a link to the policy. The author must inform staff of their duties in relation to the document. Ensure evidence of dissemination to staff is maintained. Request removal of paper copies Instruct them to inform all staff of the policy including those without access to s 14. IMPLEMENTATION AND TRAINING PLAN What How Associated action Procedural Information and Appendices Procedural Information and Appendices Launched at individual meetings with Departmental Managers and all members of the Procurement Team Communication strategy to raise awareness Lead Author Author Timeframe Within three months of issue Within three months of issue Version 1a SUSTAINABLE PROCUREMENT POLICY Page 16 of 18

17 15. PLAN TO MONITOR THE COMPLIANCE WITH, AND EFFECTIVENESS OF THE TRUST DOCUMENT 15.1 Process for Monitoring Compliance and Effectiveness Audit / Monitoring Criteria Monitor the number of SME organisation the Trust has as valid suppliers within the past 12 months Process for monitoring e.g. audit, survey Audit Committee Audit / Monitoring performed by Audit Committee Audit / Monitoring frequency Audit / Monitoring reports distributed to Annual Audit Audit Action plans approved and monitored by 15.2 Standards/Key Performance Indicators (KPIs) KPI s will be agreed with the Director of Finance at the start of each financial year to ensure the Procurement department continue to support the financial strategy of the Trust. Version 1a SUSTAINABLE PROCUREMENT POLICY Page 17 of 18

18 Section 2 Appendix 1 EQUALITY IMPACT ASSESSMENT (EIA) INITIAL SCREENING TOOL Document Name: Sustainable Procurement Policy Date/Period of Document: May 2017 Lead Officer: Head of Procurement Directorate: Finance Reviewing Officers: Head of Procurement Function X Policy Procedure Strategy Joint Document, with whom? Describe the main aim, objectives and intended outcomes of the above: The purpose of this Policy is to ensure that only value for money products and services are selected via a balanced consideration of ethical, environmental and economic impacts of our decision making processes You must assess each of the 9 areas separately and consider how your policy may affect people s human rights. 1. Assessment of possible adverse impact against any minority group How could the policy have a significant negative impact on equality Response If yes, please state why and the in relation to each area? Yes No evidence used in your assessment 1 Age? 2 Sex (Male and Female? 3 Disability (Learning Difficulties/Physical or Sensory Disability)? 4 Race or Ethnicity? 5 Religion and Belief? 6 Sexual Orientation (gay, lesbian or heterosexual)? 7 Pregnancy and Maternity? 8 Gender Reassignment (The process of transitioning from one gender to another)? 9 Marriage and Civil Partnership? You need to ask yourself: Will the policy create any problems or barriers to any community of group? Yes/No Will any group be excluded because of the policy? Yes/No Will the policy have a negative impact on community relations? Yes/No If the answer to any of these questions is yes, you must complete a full Equality Impact Assessment 2. Positive impact: Could the policy have a significant positive impact on equality by reducing inequalities that already exist? Explain how will it meet our duty to: Response 1 Promote equal opportunities 2 Get rid of discrimination 3 Get rid of harassment 4 Promote good community relations 5 Promote positive attitudes towards disabled people 6 Encourage participation by disabled people 7 Consider more favourable treatment of disabled people 8 Promote and protect human rights Yes No If yes, please state why and the evidence used in your assessment 3. Summary On the basis of the information/evidence/consideration so far, do you believe that the policy will have a positive or negative adverse impact on equality? Positive Please rate, by circling, the level of impact Negative HIGH MEDIUM LOW NIL LOW MEDIUM HIGH Date assessment completed: May 2017 Is a full equality impact assessment required? Yes (documentation on the intranet) No Version 1a SUSTAINABLE PROCUREMENT POLICY Page 18 of 18